The operations of MacVille is an area of strong value add with the state of the

The operations of macville is an area of strong value

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The operations of MacVille is an area of strong value-add, with the state-of-the-art Management Information System (MIS) forming part of MacVille’s infrastructure. The MIS has allowed for sound corporate/strategic planning, along with strong internal controls in accounting and finance. Weaknesses Outbound logistics is an area that could be improved. Currently, MacVille relies on a three-year contract with a delivery firm to deliver its goods to customers. Sometimes there is a delay in getting the appropriate vehicle to deliver the espresso coffee machines, which is causing some issues with customers. The contract delivery firm seems to be struggling to deliver the promised quality with their fast expansion. Inbound logistics is a problem, due to the lack of experienced personnel in importation and customs operations. The lack of solutions from Human Resources management has meant that delivery timelines are sometimes delayed because the proper procedure was not followed.
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Opportunities There is a lifestyle trend towards eating out more frequently as the population ages and becomes more affluent. New commercial espresso machines are being developed that use 30% less energy to run, with an innovative and more efficient heat exchanger. A carbon tax has a strong possibility of being introduced on all energy-intensive products used in a commercial enterprise. Opportunities could be found in strategic alliances with coffee bean suppliers, where market penetration could easily be achieved and costs of advertising and service could be shared. Moving into the new Sydney market, where the bulk of espresso machines are sold each year, and from which a major (but ineffective) competitor has withdrawn. Moving into the new Sydney market, where the bulk of espresso machines are sold each year, and from which a major (but ineffective) competitor has withdrawn. Threats There was also concern about the rising Australian dollar having a severe long-term impact on tourism, which was a major category buyer of espresso machines. Raising interest rates that are predicted for the coming years could impact negatively on the disposable income of coffee-drinking patrons. The concerns of the group were centred on a global corporation, Nufix Inc., shifting from instant coffee into the espresso bean and machine market. The resources they would have at their disposal in marketing, finance and human resources could be a serious threat to MacVille’s plans. However, they would still struggle to gain a foothold in a market that already has strong supplier/buyer allegiances, with most
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stretching over many years. Global players like Nufix Inc. have difficulty being adaptable to the needs of niche market buyers. Another competitor of note was BeanEx, a large coffee bean supplier that had recently started importing espresso machines for their customers. There was talk of them selling the espresso machines as wholesalers. They certainly had easy access to markets with their coffee bean trade, but they had no established service arm to help wholesale clients maintain the machines that they purchased.
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  • Fall '16
  • Chris Scholl

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